If Planned Investment Spending Is $2 Trillion and Inventories Decrease

question 104

Multiple Choice

If planned investment spending is $2 trillion and inventories decrease by $0.5 trillion, actual investment spending is:

• A) $2.5 trillion.
• B) $1.5 trillion.
• C) $2 trillion.
• D) $1 trillion.

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Definitions:

Technological Improvements

advancements or enhancements in technology that increase productivity, efficiency, or utility in various processes or products.

Production Possibility Frontier

A curve that depicts the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Production Possibilities Frontier

A diagram representing the full range of optimal production outcomes for a pair of commodities, given certain resources and factors.

Efficient Allocation

An economic condition where resources are distributed in a manner that maximizes the net benefits to society.